Senator Reid rejects Boehner "fiscal cliff" backup plan

U.S. Senate Majority Leader Harry Reid speaks to reporters in the Capitol in Washington December 13, 2012. Congressional leaders and the Obama administration are attempting to negotiate a deal to avoid the so-called ''fiscal cliff'' and work toward a deficit reduction package in the next session of Congress that begins in January.

Analysis & Opinion

WASHINGTON (Reuters) - House Speaker John Boehner's backup plan that would simply extend low income tax rates for households with incomes below $1 million a year "cannot pass both houses of Congress," Senate Majority Leader Harry Reid said on Tuesday.

Reid, a Democrat, said Boehner instead should focus on reaching a broad deficit-reduction deal with President Barack Obama. "Now is the time to show leadership, not kick the can down the road," Reid said.

Last July, Reid's Democrats passed a bill in the Senate that would have continued low tax rates, which are set to expire on December 31, for families with net incomes below $250,000.